HKD Sol

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RSCEIVER 11 maret

2 1 MAY 1992

DESK OFFICER

INDE

Mr Rickets, HKD

CONFIDENTIAL

GISTRY

FROM:

HLI Davi es

Dion Taker

Far Eastern Department

DATE:

18 May 1992

CC:

Sir J Coles Mr Burns

HONG KONG: PAPER FOR MR PATTEN

1.

I thought this was generally a very good paper. We had noticed that there was no mention of the airport finance issue but I see that Mr Burns has suggested an additional paragraph.

2 There

are

a number of references to the Party Congress. I think your paragraph 6 gets the balance about right. But neither nor Mr Seaton consider that one can hang much hope on any change in the Party leadership producing an easier line on Hong Kong. All the evidence we have suggests that this line emanates directly from Deng who is personally. committed to the restoration of Chinese sovereignty there. Much of the tough line on Hong Kong issues over recent years

derives from Deng himself (and of cour se from his close allies in the military). So long as Deng lives, no-one, including Li Peng or his successor and certainly including Lu Ping will dare to give away any substantial tricks over Hong Kong. However much the more pragmatic and reformist Chinese recognise the importance of Hong Kong's contribution to China's development, no Chinese in any leadership position would be ready to give us the benefit of the doubt. It is only appeals to their own self interest which will carry weight.

-

3. I am not certain whether you will want to reflect any of the above in your paper. One point however over timing. In your paragraph 1 you say that latest indications are that the Party Congress is likely to be in October. I suggest that you add

but it could well slip towards nearer the

end of the year".

HD1 AQH

Hayw

H LI Da vi es

CONFIDENTIAL

148

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